Buying to Renovate? Here’s How Specialist Finance Can Help

For many people, the dream home isn’t found ready-made. It might be a dated house with huge potential, a fixer-upper bought at auction, or a property that needs a complete overhaul. Renovating or refurbishing can be a smart way to create the home you want, while also adding value.

But here’s the challenge: standard mortgages aren’t always designed for properties in need of major work. If the home you’re buying is missing a kitchen, needs structural repairs, or is classed as “uninhabitable,” a high-street lender may refuse to provide a mortgage. Even if you can get one, it may not cover the costs of both purchase and renovation.

That’s where specialist renovation finance comes in.

Why a traditional mortgage may not be enough

Most high-street mortgage lenders want reassurance that the property is immediately liveable. This usually means:

• A working kitchen and bathroom must be in place.
• The property must be structurally sound.
• It should meet minimum valuation standards.

If the property doesn’t meet these requirements, lenders may consider it too risky. That’s frustrating if you’ve spotted a bargain or have the vision to turn a tired property into your dream home.

Specialist finance for renovation projects

Specialist finance offers solutions for buyers whose needs don’t fit the standard mortgage model. A few of the most common options include:

• Bridging loans for renovation – Short-term loans that allow you to purchase a property quickly and fund the refurbishment. Once the work is complete, you can remortgage onto a standard mortgage, often at a higher valuation.
• Refurbishment mortgages – Products designed to cover both the purchase and the cost of works, ideal for projects such as modernising interiors or reconfiguring layouts.
• Development finance – Suitable for larger or structural projects, such as extensions, loft conversions, or major rebuilds.

These types of property refurbishment finance are flexible, can be quicker to arrange, and are tailored to the specifics of your project.

How it works in practice

Imagine buying a run-down house at auction. A bridging loan could provide the funds to secure the property and complete essential renovations. Once the property is modernised and considered mortgageable, you can remortgage onto a standard deal, potentially releasing some of the added value.

This approach can work well for:

• First-time buyers looking to buy a cheaper property and improve it over time.
• Homeowners planning to renovate or extend their existing home.
• Investors wanting to add value through refurbishment or conversion.

Why use a mortgage broker for renovation finance?

The world of renovation mortgages and specialist property finance is more complex than standard lending. Each lender has different criteria, and the right product depends on your circumstances and your project.

At Impact Specialist Finance, we’ll take the time to understand your renovation plans, assess your options, and guide you towards the most suitable funding. With access to a wide panel of lenders — including those not available directly to consumers — we can help you secure the right finance, without the stress.

Final thought

Renovating a property can be exciting, rewarding, and financially worthwhile — but the right funding is crucial. Whether you’re buying a fixer-upper, upgrading your current home, or investing in a project, specialist renovation finance could help turn your plans into reality.

Thinking about buying to renovate? Contact Impact Specialist Finance today to explore your options and take the next step with confidence.